Dubai’s real estate market had its best third quarter on record in terms of the value of properties sold, with a 70 percent increase over Q3 2009, the best performing third quarter ever. In terms of transactions, it has also been the busiest summer for the real estate market since 2009.During the third quarter of 2021, 15,959 transactions were recorded. The third quarter of the year saw a 2.3 percent increase in volume and a 15% increase in value of property transactions, compared to the previous quarter of the same year.
The rapid recovery from the COVID 19 pandemic, government economic support measures and initiatives such as long-term investor visas, and the highly anticipated Expo 2020 event all contributed to higher investor confidence in Dubai's property market. Investors’ confidence was clearly reflected in the number of cash transactions taking place in the Emirate, with 11,463 cash transactions registered during Q3 of 2021, recording an increase of 5.8% (QOQ).
Property ticket price in Dubai (value per transaction) rose by 26% in comparison with the same quarter last year and by 12.6% quarter on quarter to stand at 2,659,060 AED per transaction.
As previously forecasted in our research, the primary market (off-plan) was about to witness a rebound in sales.During the 3rd quarter, 6,919 off-plan properties were sold at a total value of 13.48 AED billion, the highest value of sales transactions since 2013. In comparison to the previous quarter, the primary market’s transactions improved in both volume and value by 15% and 47 %, respectively. Off-plan sales accounted for 43 percent [[of total sales in Dubai's real estate market during the quarter, narrowing the performance gap with secondary market sales (ready property). When compared to the same quarter last year, the primary market's transactions volume and value both increased by 115 % and 212 %, respectively.
The primary market's swift rebound is owing to the developer's ability to respond to changes in consumer preferences and launching new developments that match the current demand in the market.
Although transaction volumes were down by 5.7% (QoQ), the secondary market performed well, 9,590 ready properties were sold for a total of 27,66 billion AED, representing a 4.6% rise in the value of transactions as compared to the previous quarter.
The secondary market sector has grown significantly year over year, with transaction volumes and values increasing by 68 % and 110 %, respectively.
The highest value of property transactions during the quarter were recorded in Palm Jumeirah, followed by Dubai Marina and Dubai Hills Estate.
Demand continues to surge for luxury property in Dubai. Wealthy individuals are acquiring what’s considered to be accessible luxury in comparison with cities like London and New York. A total of 439 prime residential transactions were registered above the 10 AED million mark at a total value of 8.44 AED. The figures are up 21.9 % from the previous quarter and 232 % from the previous year.
Villa/mansion sales accounted for 67.5 percent of luxury property transactions during the quarter, with an average price per SQ. FT of 2,489 AED, while the average price per SQ. FT for luxury flats and penthouses were 4,005 AED.
Investors' confidence in the market was also noticeable on the performance of commercial property despite an 18.8 % drop in transactions volume. The value of commercial transactions increased by 45 percent quarter over quarter. it will be intriguing to examine the impact of Expo 2020 on the emirate's office/retail sector in the following quarter or two, as this sector possesses enormous growth potential.
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